Tens of thousands of tech workers have lost their jobs in the first month of the year, but the auto industry has yet to announce major layoffs. Ford and GM are among the automakers that have avoided widespread job cuts, despite some localized cuts, such as the 3,200 job cuts planned by Ford in Europe.
Auto Industry Downsizing
The auto industry has already downsized in recent years, in preparation for changes like electrification and autonomous driving. Richard Surridge, the founder of AVANT Future Mobility, said that legacy automakers have been focused on these changes for the past three years, while tech companies have been enjoying growth due to low interest rates and new investor money. Now, the tech industry is facing its first real tightening of belts.
Strong Talent Could be a Match
Martin French, managing director at Berylls, said that the auto industry has been adapting and resizing for many years, and has learned tough lessons from the 2009 bankruptcy of GM and Chrysler. While tech companies are shedding jobs, automakers are seeking workers, especially those with tech skills. Stephen Beck, founder and managing partner of cg42, said that the need for talent in the automotive industry is very high, and the war for talent is still raging with a small pool of talent available. Companies like Ford and GM may take advantage of the tech layoffs and hire some of the affected workers.
Overall, the auto industry may benefit from the tech layoffs, as automakers are in need of workers, especially those with tech skills, to support the changes and advancements in the industry.
Technomancer is a science and tech enthusiast who enjoys writing about software and AI and other tech topics.